R.J. Reynolds to pay $325M in settlement

R.J. Reynolds Tobacco Co. said Tuesday it has entered into a settlement with the Canadian federal, provincial and territorial governments to resolve all the government’s claims related to cigarette smuggling in Canada during the 1980s and 1990s.

As part of the settlement, Reynolds is the manufacturer of the well known Camel tobacco product and has agreed to pay the governments $325 million.

Additionally, should Reynolds sell tobacco products in Canada in the future, the company has agreed to adopt packaging, marking and other measures that will help the Canadian governments in their efforts to combat the movement of contraband tobacco products in Canada.

R.J. Reynolds, based in Winston-Salem, does not conduct business in the Canadian tobacco market. Reynolds and its parent company, R.J. Reynolds Tobacco Holdings Inc., sold its international businesses to Japan Tobacco Inc. in 1999.

In a separate matter, Northern Brands International Inc., a subsidiary of R.J. Reynolds Tobacco Holdings, has entered into a plea agreement with the Ministry of the Attorney General of Ontario.

As a result of its plea to one count of conspiracy to aid others in the sale and possession of contraband cigarettes in the early 1990s, Northern Brands is required to pay a fine of $75 million. Northern Brands ceased being an operating company in 1997.